Weekend Links

Morningstar chimes in on Western Union, valuing the company at $32. The company reported earnings this week that beat analysts' estimates, resulting in a jump in the stock.

Eric Schleien has found an interesting natural gas company in FEC Resources. FEC owns 33% of FEP, a British natural gas discovery company with natural gas deposits in the Phillipines. Eric proposes a hedged trade that sounds promising, but most brokers have very expensive OTC trading commissions for this penny stock. MBTrading, my discount broker of choice allows me to trade penny stocks at a fixed $8.95 commission. I have not investigated how much it would cost me to short the FEP shares or if the company is so undervalued that I don't need to do the hedged-side of the trade. Natural gas exploration and extraction is not my area of expertise and I'm a bit wary if these deposits are extractable by such a cash-strapped company. I've set a limit order at $.04.

FatPitchFinancials has more value investing links for your viewing pleasure. George also runs Value Investing News, a Digg like news aggregator.